Reliance Retail plans 2028 IPO with expansion, debt cut

Reliance Retail is aiming for an IPO in 2028 while focusing on expanding its store network and reducing debt.

The company, which operates nearly 20,000 outlets across India, plans to add about 2,000 stores annually on a net basis after recent closures of underperforming locations.

It is also increasing its presence in the quick commerce sector by converting grocery stores in major cities into dark stores and targeting more rapid deliveries.

The company’s non-current borrowings dropped to 20,464 crore rupee (US$2.3 billion) in FY25 from 53,546 crore rupee (US$5.9 billion) a year earlier.

Gross revenue for the retail business rose 18% year-on-year to 90,018 crore rupee (US$9.9 biliion) in the September quarter, with profit after tax up 17% to 3,439 crore rupee (US$379.6 million).

Reliance Retail recently transferred its fast-moving consumer goods unit into a direct subsidiary of parent Reliance Industries as part of its restructuring.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Debt reduction, lease liabilities, and expansion funding ahead of a 2028 IPO

Non-current borrowings fell 62% to ₹20,464 crore in FY25. This number omits lease liabilities under Indian Accounting Standards (Ind AS) 116 Leases. Those sit outside borrowings and shape leverage before a 2028 IPO.
Q2 FY2026 EBITDA margin was 8.6% on ₹6,816 crore of EBITDA 1. Capex hit ₹22,296 crore in FY2025, so clarity on working-capital funding for inventory and receivables stays in focus 1.
The network had 19,821 stores and 77.8 million sq ft in September 2025. Plans call for 2,000 additions each year. Investors will watch if operating cash flow can fund rollouts and quick commerce network without extra debt 1.

Reliance’s dark store pivot creates a micro-fulfillment automation opportunity for tech vendors

Reliance Retail is converting grocery outlets into dark stores in major cities 2. These 2,500 to 4,000 sq ft sites are staff-only and enable 10 to 15 minute delivery within 2 to 3 km. That drives demand for inventory software, AI routing, and cold-chain systems 2.
Use Blinkit at 1,544 and Zepto at 1,140. Add Instamart by Swiggy at 1,062 and BigBasket at 700 to map Reliance’s rollout by city 3. That guides sales and marketing spend toward metros or tier-2 cities.
Quick commerce in India rose from $0.5 billion in FY2022 to $3.3 billion in FY2024 at a 73% annual growth rate 2. Penetration is 7% of a $45 billion addressable market, signaling buildout and vendor demand through 2030 2.